gunner,
like vince said, no big deal at a local match. if this is a big match, say like the nationals, a state match, or area championship, the stats crew would check his or her classification with USPSA headquaters and put him/her in that class. remember this, if the person is classified in one division, doesn't mean that they are classified in all 5 divisions. i'm have a master class in open and limited, but i'm not classified in production or revolver.
now if your buddy wins the match, he's only winning one division. if he is unclassified, he still wins the the division and whatever goes to the winner is his. now, if he doesn't win the division he gets nothing, prize table wise and class prize because he is not "classified".
i believe this is how it works.
hope this helps.
lynn jones